Covered Combination
Introduction A covered combination is an often-overlooked options strategy by many investors who may utilize each half of the strategy separately, but never considered combining them. This is a strategy where an investor owns 100 shares of a stock and sells a covered call and a cash secured put at the same time. The motivation...
Growing an Options Account Sustainably
Investors that are starting to trade options tend to have smaller trading accounts. In this post we will discuss the challenges with growing a smaller options account and the strategies to do so sustainably. While smaller accounts are more challenging to grow, there are best practices and strategies that investors can use for...
High Yield Income Opportunities using OptionsPlay
Option income strategies can be used to increase the yield of an equity portfolio by generating an income stream and by purchasing stocks at a potential discount. This post will cover which options strategies to use based on your primary goal, how to implement these strategies and how you can instantly scan the entire market...
Collect Maximum Income Selling Straddles and Strangles
Straddles and strangles are considered advanced options strategies that are suitable for more experienced traders with a high tolerance for risk. However, they also generate maximum income for investors with larger accounts and longer investment horizons. Both of these strategies require a sizable margin account and clearance...
Gamma, Your Option’s Silent Accelerator and Decelerator Pedal
What is Gamma? Gamma is one of the least understood of the Greeks affecting an option’s price. Many investors are familiar with the Greek variable delta: the change in the underlying option’s price with respect to the change of the underlying stock price. Gamma is the rate of change in delta per $1 dollar move in the...
Options Trading Insights with our 13 Year Technical Analysis Backtest
Overview Technical analysis is a powerful, yet exceedingly difficult method of analysis to understand and quantify. By leveraging historical data, technical analysis aims to forecast the future price movement of a financial asset. While many of these strategies may look promising, the reality is that implementation of these...
Replacing Stock with Longer Dated Options
Long-term options (options expiring in more than 9 months) provide a cost-effective way of gaining long term exposure to stocks with a smaller capital outlay and limited risk. The average price of a stock in the TSX 60 has almost doubled in the last decade. This translates to significantly more capital being required to...
Entering Options Orders and Managing Positions
Learning how to trade options is a process that takes time and patience. A critical part of placing your first options trade is learning how to enter an order into your brokerage account. Entering options orders can be daunting due to the many variables involved. This post highlights the procedures and best practices for...
Enhancing Equity Positions with Options
Introduction Options are typically utilized and viewed as an instrument for trading the direction of stocks and ETFs with leverage. However, they are also useful to equity investors as a way to increase the yield of a portfolio by generating income and purchase stock at a discount. Investors looking to enhance their equity...
Options Insights: Increasing Yields on Equity Positions with Options
The 12th annual Options Education Day in collaboration with the Options Industry Council (OIC) will take place in Toronto on September 14, 2019 at the Westin Harbour Castle. Seats are limited, so sign up before August 19 for the early bird pricing! To learn more: m-x.ca/oed Want to learn more about Increasing Yields on...
Tony Zhang
Head of Product Strategy for OptionsPlay
OptionsPlay
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